Mohammed bin Rashid establishes Dubai's international financial leadership as a catalyst

His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Sovereign of Dubai, has adopted a number of laws on the legal and regulatory framework of the Dubai International Financial Center (DIFC). In the general business environment of centrally located companies.

The amendments aim to consolidate the Center's status as a financial free zone with the most independent and developed jurisdiction and to support the growth and prosperity of enterprises between the areas of jurisdiction adopted by the English General Law in the region , including DIFC laws 5, 7, 10, 11 and 2018 for companies. And in co-ownership respectively.

Corporate law

The new DIFC Companies Act adopts a new classification system for public and private companies. These changes were followed by comprehensive discussions, consultations and benchmarking to maximize flexibility, especially for small private companies, as well as sufficient controls over complex institutional arrangements such as those related to listed companies, mergers, settlement and debt restructuring.

The amendments to the Companies Act coincide with a complete upgrade of the Center's existing business systems to facilitate business while meeting the latest requirements of the FATF and the Organization for Economic Co-operation and Development ( OECD) on the transparency of effective ownership obligations and the fight against money laundering.

The amendments to the Real Property Act and the Strata Joint Property Act include the modernization of the property ownership system to better protect the rights of owners and borrowers to own real estate in the DIFC area, as well as to protect property rights. a record of the properties sold under the project and security requirements for developers.

Best practices

"The comprehensive and sound legal framework is one of the cornerstones of the world's leading financial centers, including the Dubai International Financial Center (DIFC)," said Essa Kazim, chairman of the Dubai International Financial Center Authority (DIFC) ). "It allows businesses and investors to operate easily and confidently. We continue to develop our regulatory system in line with global best practices to strengthen our position as one of the world's leading financial centers."

"In addition to improving transparency and protecting both buyers and investors, the new changes improve DIFC's business environment, reduce business constraints, and increase profitability and flexibility for fast growing small businesses." in the center, "Kazem added.

Law Project

The Center also held awareness sessions attended by approximately 300 participants, which allowed the business community involved in writing the amendments to enrich themselves in recognition of their willingness to engage businesses and institutions. working towards its goal in search of the best legal frameworks. Supporting their work in accordance with the best international standards and practices.

The Companies Act – Law No. 5 of 2018 on Dubai International Financial Centers – adopts a new classification scheme for companies operating in the financial center by removing the names of "limited liability companies" and divisional companies in general , private and public. The Center's companies and their restructuring and consolidation plans to keep pace with the growth of the merger activities in the market.

Operational Law

The new Operational Law – Dubai International Financial Center Law No. 7 of 2018 – consolidates the general requirements and conduct of companies operating in the DIFC, provides a framework for the role of the Registrar of Companies and makes improvements to the system. business licenses in order to increase the volume of activities carried out within the DIFC. As well as adding new provisions to protect whistleblowers.

Real Estate Law – Dubai International Financial Center Law No. 10 of 2018 – has been amended to ensure that buyers get full disclosure of projects and units purchased. In addition, real estate developers are now required to create a guarantee account to collect the amounts paid by purchasers of property under the project.

Act of stratum

The amendment to the Strata Commons Act – DIFC Act No. 11 of 2018 – extends the powers and duties of the real estate registrar to include the judgment of parties who violate their obligations.The amendment will allow the courts of the Center to hear directly with the parties concerned and thus to manage litigation effectively and impartially.

In addition, the DIFC introduced the final rules for utility goods, which require the provision of accurate information about the owner of the end user regarding all registered entities in the center and to use mechanisms privacy protection.

The amendments come just a few weeks after the promulgation of Law No. 6 of 2018 amending the DIFC's regulatory law, which aims to strengthen the Center's anti-money laundering and terrorism systems for the next evaluation. UAE. Financial Action "in 2019.